South Africa Moves to Scrap R898m Licence Printer Deal Amid Major Backlog

Department Takes Licence Printer Deal to Court Amid Backlog Chaos

South Africa’s ongoing driving licence crisis has taken a major legal turn, with the Department of Transport filing papers in the Pretoria High Court to cancel a controversial R898-million contract for new licence printers. The department wants the court to set aside the contract awarded to Idemia South Africa and rerun the tender process entirely.

This development follows serious irregularities in the tender adjudication, first flagged by the Organisation Undoing Tax Abuse (Outa). The contract, originally approved at R486 million, ballooned to nearly R900 million, raising concerns over procurement flaws and cost escalation.

Court Papers Detail Procurement Failures

According to the Department of Transport’s court documents, the tender process was riddled with issues, including:

• A near R400 million cost escalation

• Outdated pricing models

• Missing costs for printing materials

• Bidder non-compliance and flawed scoring

• Weak internal documentation and oversight

The founding affidavit, signed by acting director-general Mathabatha Mokonyama, reveals that the Driving Licence Card Account (DLCA),  the entity that ran the tender lacked the capability to handle such a complex procurement.

These findings were corroborated by an internal review, an external audit, and a damning report from the Auditor General of South Africa (AGSA), which is also part of the court file.

No Mediation, Just Litigation

Outa confirmed that the department is opposing mediation due to unresolved disputes with Idemia. It remains unclear whether Idemia will contest the legal challenge in court.

Minister Barbara Creecy, who now oversees the Department of Transport, escalated the matter to the AGSA after receiving a detailed report from Outa. The department is now relying on these investigations to support its bid to cancel the deal.

Home Affairs Steps In As Interim Printer

To address the chaos, Creecy has signed an agreement with Government Printing Works (GPW), a security printing agency under the Department of Home Affairs, to act as a backup licence card printer.

“We expect that this backup solution will be able to print driver’s licence cards within three months,” Creecy told Parliament during the 2025/26 budget vote.

GPW currently prints secure documents like passports, birth certificates, and smart ID cards, making it a logical interim solution while the tender is re-run.

Massive Backlog Continues

Despite efforts to restore operations, the driving licence card system remains in crisis. The sole printer broke down earlier in 2025, contributing to a backlog that reached 747,748 cards.

As of mid-June, the department said the backlog had only dropped to 690,000 cards, with about 269,000 cards printed, though this figure likely includes new applications. At the current rate of approximately 2,400 cards printed per day, it could take more than 13 months to clear the full backlog.

Turnaround times have also worsened. Where applicants previously waited two weeks, it now takes between four to six weeks to receive a new driving licence card.

“If you applied for your driver’s licence card before the current one expires, you must just keep your receipt with you in the car,” said department spokesperson Collen Msibi.

{Source: My Broad Band}

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